Closing Bell: Nifty ends below 17,600, Sensex falls 360 pts; metal, oil & gas stocks gain

Taking Stock: Market Falls For Fourth Straight Session; Metal, Pharma Gain

For the week, BSE Sensex lost 1,282.89 points (2.13 percent) to close at 58,765.58, while the Nifty50 fell 321.2 points (1.79 percent) to close at 17,532... Read More

USDINR spot closed 11 paise lower at 74.11 on the back of weakness in the US Dollar Index and FPI flows into the ongoing Aditya Birla IPO. Sharp gains in Chinese currency against the US Dollar have helped the rupee as well. We expect a range of 73.80 to 74.30 to unfold over the next week.

Indian equity markets record decline for the fourth consecutive day, logging to become the worst week in over five months. However, Nifty50 recovered from day's low and managed to close above 17,500 levels. On the sectoral front, a mixed performance was visible as IT, realty and banks ended lower while PSU banks, pharma and metals gained.

Chip shortage causes month-on-month fall in auto sales of top players. Broader markets outperformed their larger peers. India's September Manufacturing PMI came out to be 53.7 against 52.3 in August and GST collection for September clocks in at Rs 1.17 lakh crores, higher by 4.4% from August.

Going forward, markets could witness action in IT stocks ahead of upcoming results while auto could show recovery from these levels as the festive season kicks in. Pharma also looks to be another corner on the basis of technical grounds. Nifty50 should find near term support near 17,400 whereas resistance levels could be 17,700.

In line with global markets, Sensex 30 and Nifty 50 saw a decline this week. Sensex 30 and Nifty 50 fell by ~2% during the week. BSE Midcap and BSE Smallcap index outperformed the Sensex and Nifty. In terms of sector, the BSE Power index gained 6% and BSE Oil & Gas index moved up by 4.3%. BSE Energy and BSE Metal index too gained ~3% in this week. On the other hand, with ~5% decline, the BSE IT index was the major underperformer. The US 10 year treasury yield rose further this week above the 1.5% mark. Crude oil prices remained on the higher side.

On the domestic data front, the performance remains broadly on expected lines. Global and domestic inflation risk from a sharp increase in global energy prices, rising US bond yield, and concerns over the Evergrande issue are near-term challenges for the global and Indian equity markets.

FIIs have been net buyers in September 2021. Most of the major emerging markets witnessed FPI inflows in the month of September’21.

Backed by global clues and SGX nifty, the benchmark index opened on a negative note and made an intraday low at 17452.90 levels, but in the dying hours showed a bounce back and managed to close the sessions at 17532.05 level with a loss of 86 points. While bank nifty closed the session at 37225.90 levels with a loss of 199.20 points.

On the technical front, the Index has given a breakdown of the rising trendline and given closing below the same, which suggests some correction can come. On a daily chart, the index has been trading with lower high, lower low formation, which indicates weakness in the counter. Moreover, the index has started to trade below 21 DMA, which adds weakness in the counter. At present, the Nifty has immediate support at 17400 while resistance comes at 17750 levels.

Despite favourable growth India’s core sector output, which accelerated by 11.6% in August from 9.9% in July, domestic indices were in red reflecting weak global cues and losses in heavyweights. High Eurozone inflation at 3.4% in September, slowing global growth and the existing Chinese crisis bolstered global sell-off.

The auto sector is hold-on despite weak sales, in anticipation of festival demand, as numbers from major manufacturers showed a fall in September sales mainly due to semiconductor supply shortage.

Index closed a week at 17532 with a loss of nearly two percent and formed a bearish candle on the weekly chart. On daily chart index formed a Doji candle pattern on Friday session which hints indecision in the markets.

Going forwards index has formed supports near 17450-17400 zone and if managed to sustain above said levels one can expect a decent pullback towards immediate & strong hurdle zone of 17620-17740 where one can lock immediate profit in longs, also the overall range for the Nifty is coming in between 17300-18000 zone.

The market witnessed some lackluster movement and an attempt to hold the level around the Nifty 50 Index level of 17450. It may witness a further correction in the market to continue till the levels of 17300-17350.

Technical indicators suggest a volatile movement in the market. The traders to refrain from building a new buying position until further improvement in the market breadth.

Benchmark indices fell for the fourth straight day on October 1 with Nifty finishes below 17,600.

At close, the Sensex was down 360.78 points or 0.61% at 58,765.58, and the Nifty was down 86.20 points or 0.49% at 17,532.00. About 1716 shares have advanced, 1373 shares declined, and 150 shares are unchanged.

Bajaj Finserv, Maruti Suzuki, Asian Paints, Bajaj Finance and Bharti Airtel were among the major losers on the Nifty. M&M, Coal India, IOC, Dr Reddys Laboratories and ONGC were among the gainers.

Buying was seen in the pharma, metal, PSU Bank and energy sectors, while selling was seen in the realty, bank and IT sectors. BSE midcap and smallcap indices ended with little change.

Paras Defence and Space Technologies had a stellar debut today on bourses given its niche presence in the defence and space. It caters to optics, electronics, EMP protection solutions and heavy engineering segments in the defence/ space where GoI’s outlays is expected to increase at 16% CAGR to over USD 14.5bn by 2031.

Paras would be specially focusing on optics and drones which now forms ~67% of the order book (OB; Rs 3 bn). It is looking to tap import substitution opportunities under GoI’s Atmanirbhar Bharat and ‘Make In India’ initiatives. Thus we like Paras given its complex/wide product portfolio, presence in niche defense/space, strong client relationship and high entry barriers. Given the huge impetus on the defense by the government, the stock presents good opportunity for investors to participate in this niche space.

TVS Motor Company registered sales growth of 6% with 347,156 units in September 2021 as against sales of 327,692 units in the month of September 2020, company said in its press release.

TVS Motor Company was quoting at Rs 562.20, up Rs 12.65, or 2.30 percent on the BSE.

SJVN is going to raise up to Rs 1000 crore through private placement of unsecured, rated, listed, redeemable non-convertible debentures (NCDs).

SJVN was quoting at Rs 28.45, up Rs 0.30, or 1.07 percent on the BSE.

The public issue of Aditya Birla Sun Life AMC is seeing a good demand from investors as it is subscribed 3.14 times so far on October 1, the final day of bidding. Investors have put in bids for 8.72 crore equity shares against offer size of 2.77 crore equity shares, garnering bids worth Rs 2,347 crore, the data showed.

Qualified institutional buyers bought 4.98 times their reserved portion and a part set aside for non-institutional investors was subscribed 1.99 times.

Retail investors have put in bids 2.88 times the portion set aside for them and the bids by shareholders was 1.18 times their reserved portion.